4 Stocks Spiking on Big Volume - views

MADISON, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

From a technical perspective, WYNN is ripping higher here right above its 50-day moving average at $134.69 with above-average volume. This move is quickly pushing shares of WYNN within range of triggering a near-term breakout trade. That trade will hit if WYNN manages to take out some near-term overhead resistance at $140.41 with high volume.

Traders should now look for long-biased trades in WYNN as long as it's trending above $137.50 or above today's low of $136.11, and then once it sustains a move or close above $140.41 with volume that hits near or above 1.24 million shares. If that breakout triggers soon, then WYNN will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high at $144.99. Any high-volume move above $144.99 will then push shares of WYNN into new 52-week high territory, which is bullish technical price action. Some possible upside targets off that move are $149 to $150, or north of $150.

SEI Investments (SEIC) is a provider of investment processing, fund processing and investment management business outsourcing solutions that help corporations, financial institutions, financial advisors and affluent families create and manage wealth. This stock is trading up 3.9% at $29.84 in recent trading.

From a technical perspective, SEIC is surging higher here back above its 50-day moving average of $29.01 with above-average volume. This move is quickly pushing shares of SEIC within range of triggering a near-term breakout trade. That trade will hit if SEIC manages to take out some near-term overhead resistance levels at $30.13 to its 52-week high at $31.07 with high volume.

Traders should now look for long-biased trades in SEIC as long as it's trending above its 50-day at $29.01, and then once it sustains a move or close above those breakout levels with volume that hits near or above 743,775 shares. If that breakout triggers soon, then SEIC will set up to enter new 52-week high territory above $31.07, which is bullish technical price action. Some possible upside targets off that breakout are $35 to $37.

From a technical perspective, CSOD is trending modestly higher here with decent volume. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $39.07 to its recent high of $45.46. During that uptrend, shares of CSOD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CSOD within range of triggering a near-term breakout trade. That trade will hit if CSOD manages to clear its all-time high at $45.46.

Traders should now look for long-biased trades in CSOD as long as it's trending above $43 or $42.50, and then once it sustains a move or close above $45.46 with volume that hits near or above 388,881 shares. If that breakout triggers soon, then CSOD will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55.

From a technical perspective, EQM is gapping sharply higher here with above-average volume. This move is quickly pushing shares of EQM within range of triggering a major breakout trade. That trade will hit if EQM manages to take out its all-time high at $51.72 with high volume.

Traders should now look for long-biased trades in EQM as long as it's trending above today's low of $49.84, and then once it sustains a move or close above $51.72 with volume that hits near or above 103,705 shares. If that breakout triggers soon, then EQM will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $55 to $60, or even north of $60.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Madison, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.